1. Clarifications w.r.t. GST Annual return and Audit

i. Discharging the additional liability through annual return

Yes, pay the tax along with interest through DRC-03.

ii. Basis for filling Annual return, GSTR-1 or GSTR-3B or Books of accounts?

  • Ideally, three of them should be in synchronous. In case of deviations, there should be excess/Short payment of tax.
  • If short paid, pay through DRC-03, if excess paid, claim refund through RFD-01A.

iii. What is the basis for the credit as per GSTR-2Aamount reflected in Table 8A:

Table 8A is the 2A amount considered as followed:

  • Based on the GSTR-1s of the suppliers
  • Filed before 31.Mar.19
  • Earlier it was clarified that the invoices with different Place of supply, other than the regd. State of the recipient are not considered.
  • It is also clarified that the supplier who has added the invoces in GSTR-1 but not foiled the same were also nor been considered.

iv. RCM of 17-18 paid and credit availed in 18-19:

Should be declared in GSTR-9 of FY 18-19, not in 17-18. Any differences in the turnover due to this adjustment, report in GSTR-9C.

v. Role of CA/CMA for 9C:

It is clarified that, w.r.t. reconciliation statement, the role is limited to reconciling the values declared in annual return (FORM GSTR-9) with the audited annual accounts of the taxpayer. No need to go beyond the books of accounts.

vi. Turnover to be considered for the threshold of 2Crs:

PAN based turnover from Jul’17-Mar’18

i. Credit /Debit notes of 17-18 invoices issued in 18-19:

  • For GSTR-9, if provision for the same was made in Books, disclose it in Pt-V
  • For GSTR-9C, no field to disclose the debit notes for which the provision was made, hence, the same can be declared in 5O.

ii. Expense wise credit reconciliation-Table 14- GSTR-9C:

Only the expenses on which the credit was availed should be reconciled. The list given is indicative, tax payer can add any other heads of expenses.

vii. Difficulty in filing details of

  • Table 16A – Procurements from composition dealer and
  • Table 18 – HSN summary for inward supplies

The suppliers can fill the data to the extent available. This data is only for information purposes and reasonable/explainable variations in the information reported in these tables will not be viewed adversely.

{Refer: Press release dated 03-Jul-19}

2. Composition scheme:

2.1.The last date for availing the alternate composition scheme (6% scheme) has been extended up to 30-Sep-19

  • The last date for opting the alternate composition scheme by filing GST CMP-02 was 30th Apr’19.
  • Considering the representations from the trade,
  • A corrigendum to circular 97/16/2019_GST_05-04-2019 was issued to extend the date up to 31.Jul.19.
  • Further, another corrigendum was issued to extend the date up to Sep.19

{Refer: Corrigendum 2 to Circular No. 97/16/2019-GST dated: 01-Jul-19}

2.2.Due date for payment of tax through CMP-08 for the first quarter Apr’19-Jun’19 has been extended up to 31.Aug.2019

  • As per the recent amendments, the suppliers under composition scheme are required

1. Pay tax on quarterly basis by filing FORM GST-CMP-08 by 18th of the month following the end of the quarter.

2. File the Annual return in FORM GSTR-4 by 30th April of the following the end of financial year

  • However, since the GSTN is not ready with facility to file the same, the due date for the first quarter has been extended from 18th Jul’19 to 31st Jul’19.
  • Further the same is extended up to 31st Aug’19.

{Refer: Notification No. 34/2019-CT Dated: 18-Jul-19 and 35/2019-CT Date: 29-07-19}

3. The supplier with Multiplex screens should issue electronic ticket in accordance with Rule 46, except for the details of the recipient.

  • As per 4th Proviso to Rule 46 of CGST rules,
    • if the value of invoice is less than Rs.200 [Sec 31(3)(b) of CGST act,2017],
    • Recipient is not a registered person and
    • The recipient also doesn’t want an invoice,

the supplier need not issue invoice for each of the supplies, rather he can issue a consolidated invoice at the end of the day.

  • The above said proviso has been amended to exclude the persons supplying services by way of admission to exhibition of cinematograph films in multiplex screens.
  • Further new sub-rule 4A has been inserted in Rule 54 to specify that,
    • Such persons should issue an electronic ticket
    • The ticket should contain all the details as required in Rule 46, except the details of the recipient
    • Such ticket shall be considered as the tax invoice for all the purpose of the act.
  • It is also specified that, for other than multiplex suppliers, this is optional.

{Refer Notification No. 33/2019-CT Dated: 18-Jul-19}

4. New rule 83B, has been inserted to notify the forms for surrendering the enrolment of GST practitioner

  • FORM GST PCT-06 for surrendering the registration by the GST practitioner
  • FORM GST PCT-07 for issuing the order by the commissioner

{Refer Notification No. 33/2019-CT Dated: 18-Jul-19}

5. The tenure of “The National Anti-Profiteering Authority” has been extended from 2yrs to 4yrs by amending rule 137.

{Refer Notification No. 33/2019-CT Dated: 18-Jul-19}

6. The Rule 138E, related to Restriction on furnishing of information in PART A of the E-way bill, has been amended to notify the forms for releasing the restrction

  • FORM GST EWB-05for the application by the supplier
  • FORM GST EWB-06 for issuing the order by the commissioner

{Refer Notification No. 33/2019_CT_18-Jul-19}

7. GST on ‘Electrically operated vehicles’:

7.1. Tax rate for supply of such vehicles, Charger or Charging station has been reduced to 5%

7.2. Hiring of such vehicles, with capacity > 12 passengers, to a local authority has been exempted.

An explanation has been provided to state that the “Electrically operated vehicle” means

  • Vehicle falling under Chapter 87 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)
  • Which is run solely on electrical energy derived from an external source

or from one or more electrical batteries fitted to such road vehicle.’.

{Refer Notification No. 12/2019 and  13/2019_CTR_31-Jul-9}

8. For claiming refund of tax paid on Export of services/SEZ supplies with payment of tax, the excuse of filing incorrect details in GSTR-3B has been extend up to 30.Jun.19

i. RFD-01A has been designed to allow refund for turnover up to maximum of amount disclosed in table 3.1(b) of GSTR-3B.

ii. However, since certain tax payers had wrongly disclosed the Export of services/SEZ supplies with payment of tax in Table 3.1(a) of GSTR-3B instead of 3.1(b), they are unable file the refund application for such transaction.

  • The circular has provided an excuse for such persons for errors made from Jul’17-Mar’18 and allowed them to file the refund applications without such controls.
  • The above said exclusion has been extended up to 30.Jun.2019

{Refer circular 45/2018-30-May-18 and Corrigendum dated 18-Jul-19}

9. Clarification on supply of IT enabled services  – Person supplying services on his own account can never be an intermediary

Considering the different types of treatments for the transaction of Information technology enabled services (ITeS in short), the department has clarified that,

  • The definition of intermediary services provides specific exclusion of a person i.e. that of a person who supplies such goods or services or both or securities on his own account
  • Therefore, the person supplying services on his own account can never be an intermediary, irrespective of the facts to whom / on whose behalf such services were provided.

Further, the same is explained with 3 different scenarios:

Scenario Treatment
Supplier A provides back end services to his client B or the customer of B i.e. C. A is not an intermediary as he is providing his own services
The supplier A located in India arranges or facilitates the supply of goods or services or both by his client B located abroad to the customer of client C.
Such backend services may include support services, during pre-delivery, delivery and post-delivery of supply (such as order placement and delivery and logistical support, obtaining relevant Government clearances, transportation of goods, post-sales support and other services, etc.)
A  is an intermediary, as he is just facilitating the supply of goods/services but not the actual supplier of Goods/Services.
Combination of the above two scenarios. Would vary based on the facts of the case. Should be decided on Case-to-case basis.

 {Refer Circular 107/2019-GST dated: 18-07-2019}

10. Clarification for treatment of Goods sent/taken out of India “for exhibition” or “on consignment basis” for export promotion and the documents to be maintained

  • Considering the different types of treatments for the transaction of sending goods out of India as exports / otherwise, the department has issued the clarifications as below:
    1. Whether the transaction amounts to Supply / Zero-rated supply?
      • The said movement doesn’t amount to supply, as there is no consideration and also it doesn’t fall under Deemed supplies as specified in Schedule-I of CGST act,2017
      • Since it is not a supply, it can’t be a zero-rated
    2. If not a supply, Documents & procedure for transportation:

Since it is not a supply,

  • The goods should be sent by issuing a delivery challan.
  • No GST required to be paid
  • Also, no LUT/Bond are required to be executed
  • What if the goods taken outside are sold out?
  • The transaction amounts to supply, to the extent of goods sold and
  • The supplier should issue invoice for the part of the goods sold in accordance with the respective provisions
  • Since, the goods are taken outside India, it amounts to export of Goods

i. What if the goods taken out were neither sold nor brought back to India?

If the goods sent/taken out doesn’t come back within 6 months from the date of sending the goods,

  • The same shall be treated as supply
  • Since, the goods are taken outside India, it amounts to export of Goods
  • The supplier should issue GST invoice upon expiry of 6 months

1. After issuing invoice, can we claim refund?

      • Yes, the tax payers can claim the refund
      • However, such refund should be for the accumulated credit but not for the taxes paid

2. Any other details are required to be maintained?

The supplier should maintain the data in the below format:

Folio No. / Refer-ence No.
Descri-ption of specified goods
Quantity unit (Nos./ grams / piece etc.)
Value per unit
Total value of the specified goods
Date of removal from place of business
Delivery Challan No. & date
Shipping Bill no. & Date
Details of specified goods supplied (i.e. specified goods not brought back)
Invoice no. & date
Details of speci-fied goods brought back
Bill of Entry No. & Date

{Refer circular 108/2019-GST Dated 18-Jul-19}

11. Clarification on issues related to GST on monthly subscription/contribution charged by a Residential Welfare Association from its members

Various clarifications provided are summarized in the table below:

Issue Clarification
What is the limit for exemption?
Is there any exemption?
If yes, what is the threshold limit?
Yes, it is exempted. Limit is as followed:
01-Jul-17 to 24-Jan-18: Rs. 5,000/-
25-Jan-18 onwards : Rs. Rs. 7,500/-
Threshold is per owner per flat?
Mr. A is having 3 flats and maintenance is Rs. 7,000/- per flat totalling to Rs.21,000/- per month. Exemption is applicable or not?
It is per flat not per owner.
Reason, in general, the membership is based on the flats but for the owners.
Amount received from Mr. A is eligible for exemption.
Tax computation:
If the monthly maintenance is >Rs. 7,500/-, say Rs. 9,000/- tax should be paid on gross amount of Rs. 9,000 or net amount of Rs. 1,500/- (9000-7500)?
The tax should be paid on gross amount. i.e. Rs, 9,000/- in the example.
GST Registration:
If the monthly maintenance is more than Rs.7,500 and Annual turnover is less than Rs.20L, still they should get registered?
Annual turnover of RWA Monthly maintenance charge Registration Whether exempt?
More than Rs. 20 lakhs More than Rs. 7,500/- Required No
Less than or equal to Rs. 7,500/- Yes
Less than or equal to Rs. 20 lakhs More than Rs. 7,500/- Not required Yes
Less than or equal to Rs. 7,500/- Yes
Input credit:
If the amount charged per month per member is >Rs.7,500/-, RWA is Eligible for credit or not??
Eligible for all Goods, Capital goods and Services.
E.g.: Capital goods: Generators, water pumps, lawn furniture etc
Goods: taps, pipes, other sanitary/hardware fillings etc.
Services: repair and maintenance services…etc.

{Refer circular 109/2019-GST Dated: 22-Jul-19}

12. Circular cannot run contrary to Statutory Provisions – GJ-HC orders grant of IGST paid on exports as Refund irrespective of the fact higher rate of duty drawback claimed

Case law ref: Amit Cotton Industries Vs PR CC

Facts of the case:

  • The supplier has exported the goods to Bangladesh under with payment of IGST option. The suppliers had also claimed the duty drawback @ higher rate i.e. 1%.
  • The department has denied the refund of tax stating that the supplier has claimed the drawback at higher rate instead of lower rate of 0.15% and hence, shall not be eligible for the refund.
  • Supplier has paid back the differential 0.85% but still the govt. has not processed the refund

Analysis:

  • There is no restriction in the law stating that the supplier claiming higher rate of refund shall not be shall not be eligible for the refund.
  • The only condition exists is that, the supplier has not claimed any benefits referred in Rule 96 sub rules 4A and 4B.
  • The circular referred by the department is not in accordance with the provisions of the Law and the rules.

Judgement:

  • The supplier is eligible for the refund. The amount should be refunded along with 7% simple interest from the date of shipping bill, till the date of refund.

13. GSTR 3B is not a statutory return – GJ-HC Orders to set aside the Press Release by CBIC w.r.t. last date for availing credit dated 18.10.18

Case law ref: AAP AND COMPANY Vs UOI

Facts of the case:

  • vide press release dated 18.10.18 has clarified that, as pe Sec 16(4), the last date for filing GSTR-3B for the month Sep’18, i,e, 20-Oct-18 is the last date for availing credit of the invoices pertaining to FY 2017-18.
  • The petitioner had stated that the return GSTR-3B is not the return required as per Sec 39 of the CGST act. Accordingly, Para 3 of the press release is not in consonance with Section 16(4) of the CGST Act.

 Analysis:

  • Initially it was decided to have three returns in a month, i.e. return for outward supplies i.e. GSTR-1 in terms of Section 37, return for inward supplies in terms of Section 38, i.e. GSTR-2 and a combined return in Form GSTR-3.
  • However, considering technical glitches in the GSTN portal as well as difficulty faced by the tax payers it was decided to keep filing of GSTR-2 and GSTR-3 in abeyance. Therefore, in order to ease the burden of the taxpayer for some time, it was decided in the 18th GST Council meeting to allow filing of a shorter return in Form GSTR-3B for initial period.
  • It was not introduced as a return in lieu of return required to be filed in Form GSTR-3. The return in Form GSTR-3B is only a temporary stop-gap arrangement till due date of filing the return in Form GSTR-3 is notified.
  • Though it was stated to be return in lieu of GSTR-3, the said rule was retrospectively amended to state that it is not a return in lieu of GSTR-3.

Judgement:

It was held that,

  • “The impugned press release dated 18th October 2018 could be said to be illegal to the extent that its para-3 purports to clarify that the last date for availing input tax credit relating to the invoices issued during the period from July 2017 to March 2018 is the last date for the filing of return in Form GSTR-3B (for the month of September 2018).

The said clarification could be said to be contrary to Section 16(4) of the CGST Act/GGST Act read with Section 39(1) of the CGST Act/GGST Act read with Rule 61 of the CGST Rules/GGST Rules.”

Thank you for the patient reading. Hope this document has added value to your knowledge.

For feedback or comments, please write to [email protected]

Disclaimer: This document had been written to provide updates under GST in a simple manner.  The author shall not be responsible for any of the decision made based on the contents of this document.

Team JVK & Associates

Author Bio

Qualification: CA in Practice
Company: J V N & Associates
Location: Hyderabad, Telangana, IN
Member Since: 18 Jun 2017 | Total Posts: 22
I have a blend of corporate and the professional experience. Post qualification, for the first 2 years (2015 & 2016), I worked for Infosys, Globally reputed Indian Software Company and for the next 2 years (2017 & 2018) in Hiregange & Associates (H&A), the firm known for it’s expe View Full Profile

My Published Posts

More Under Goods and Services Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

June 2021
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
282930